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The Benefits Of Hiring An Accountant

Wed 25th Jul 2018

Being an entrepreneur or a small business owner can often mean that you have to be a finance expert as well. When you set up a business as a contractor, sole-trader or limited company, you may have great expectations about the success of your business however are you ready to take on the bookkeeping and accounting too?

What is an accountant?

An accountant is a qualified individual who is trained in bookkeeping and the larger picture of finances, including the analysis and reporting details behind it. Their duty will include preparing financial reports, tax returns and help in budgeting and forecast planning on behalf of a company or organisation.

Therefore, if you are starting out in business or currently running your own limited company and do not have a head for figures, it may be worth considering hiring an accountant.

What are the benefits of hiring an accountant for a small business?

Time Management

Running a business takes a lot of hard work and time especially in the early stages when you are looking for new clients or contracts and trying to grow the business. Also, if your startup was spurred on by the desire to have a work-life balance, you will want to have more time to spend doing the things that you love, like engaging in family time or hobbies.

When you consider the time it can take to manage your finances, get ready for tax returns and general organisation of your accounting - it can be extremely time consuming.

Hiring an accountant to relieve you of this pressure and can mean that your work-life balance is restored providing you with more time to work on the business and do the things that you really enjoy.

Expertise

Although you may ok with figures and organising your finances, are you on top and up to date with the latest legislations and laws? Are you able to dedicate time to keep your skills up to date when software changes or new rules are introduced? To manage this well takes up more valuable time.

The benefit to hiring an accountant will mean having an expert look after your finances and the peace of mind that everything will be in accordance to latest tax laws and legislation. If you are self-employed, an accountant will be able to advise if you would be better off becoming a Limited company and will be aware of the different legal structures associated with being self-employed. An accountant will keep up to date with everything they need to in order to keep your business running smoothly. Their job is to be the expert so you don’t have to be!

Completing forms, on time and accurately

It’s easy to think that if you’re a small business or sole-trader you don’t have a need to fill in many forms when it comes to your tax returns or other forms that may require completion. However, it’s one thing to complete them, it’s another to do it accurately and on time! If a return is sent late, HMRC will issue a fine - another expense to add to your business costs and one that could definitely be avoided.

Hiring an accountant will ensure that the forms are completed correctly and in plenty of time of the deadlines set by HMRC. Knowing which forms need completing and by when will be a weight off your mind. They will contact you for the information that they require in order to complete the forms and you have peace of mind that it’s taken care for you.

Maximise your tax bill

If you’re completing your tax returns yourself, you may not have the knowledge about the tax benefits that you are entitled to or how to claim them. Planning throughout the year with business finances will help maximise your tax advantages and benefits.

When working with an accountant, they will be able to advise throughout the year of best practice and the best ways to work your business in order to benefit from tax advantages. It’s not a case of completing a tax return at the end of the year and hoping for the best - it’s about prep and planning and allowing your business to grow through all means possible.

Grow your business

At the end of the day, a good accountant will be there to help you grow your business. They will be on hand to advise and guide where they can and to help you achieve the best financial results as possible. Most accountants allocate a dedicated account manager to each of their clients, so the client has one point of contact that they can build a relationship with and know they can ask for help when they need it. It’s in the accountants’ interest to get to know and understand how your business works, so they can can take pride when your business grows. It’s a partnership where two parties are working together to achieve results.

Every penny counts, and whether you are a freelancer, limited company contractor or sole-trader, hiring a good accountant can make the difference to any business looking to grow and see longevity.

We at 2020 Accountancy are specialists in the contractor industry and have years’ of experience working to help contractors manage their business. If you’d like to know more about our services and how an accountant can benefit your business, get in touch today.